Canadian Full-Time Jobs Plunge as Youth Unemployment Hits Fifteen-Year High

Statistics Canada reported today that the country lost 41,000 jobs in July 2025, the sharpest monthly drop since early 2022.

The decline in employment hit full-time workers hardest, with 51,000 full-time jobs disappearing. The unemployment rate stayed at 6.9%, still close to a four-year high.

The labour force participation rate fell to 65.2%, marking a slight decrease from June.

The employment rate for July—now at 60.7%—also slipped, reflecting both the job losses and the growing gap between working-age people and those actually working.

Young workers faced a particularly harsh setback. Canadians aged 15 to 24 lost 34,000 jobs, pushing their jobless rate to 14.6%.

This is the highest youth unemployment rate outside of the pandemic since September 2010, and illustrates how hard it is for young people to secure stable work.

Most of the losses occurred in the private sector and hit sectors like information, culture, recreation, and construction.

Average hourly wages for employees working permanently edged up to 3.5% growth annually, offering some relief for those who kept their jobs.

Canadian Full-Time Jobs Plunge as Youth Unemployment Hits Fifteen-Year High

Still, with mounting job losses, this increase does little to counter anxiety in many households.

Canada’s population keeps rising—driven largely by immigration—and 715,000 new residents arrived over the past year, but the economy added only 307,500 jobs during that period.

Sluggish job creation amid rapid population growth has put extra pressure on job markets and made it harder for newcomers to find work.

These dynamics are testing not just workers but also companies, which face greater uncertainty and struggle to plan as costs and demand fluctuate.

Is Western Canada on the Verge of Breaking Away?

In July, the construction and information sectors led the losses, while manufacturing, often considered vulnerable to trade risks, showed more stability.

Although overall inflation sat at 1.9% and wage growth outpaced price rises, the steady unemployment rate and falling employment point to a cooling economy.

Ongoing tariffs from the United States have weighed on hiring in key sectors according to the Bank of Canada.

The picture for the months ahead is mixed. Another jobs report will come before the next Bank of Canada policy meeting, alongside two more inflation updates and quarterly GDP figures.

For now, Canada’s labour market looks tight for the youngest and most vulnerable groups, and businesses face uncertainty about when or if hiring will rebound.